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EDITORIAL August 15, 2000 VNN6156 Comment on this story Private Gifting Clubs BY JIVA GOSWAMI DASA EDITORIAL, Aug 15 (VNN) — Dear Assembled Vaisnavas, For those interested in the legality of "Private Gifting Clubs" recently becoming the rage, the following Florida Statute, curiously located in the "Gambling" section, may be of interest. There will be a condensed version afterwards. 849.091 Chain letters, pyramid clubs, etc., declared a lottery; prohibited; penalties.-- (1) The organization of any chain letter club, pyramid club, or other group organized or brought together under any plan or device whereby fees or dues or anything of material value to be paid or given by members thereof are to be paid or given to any other member thereof, which plan or device includes any provision for the increase in such membership through a chain process of new members securing other new members and thereby advancing themselves in the group to a position where such members in turn receive fees, dues, or things of material value from other members, is hereby declared to be a lottery, and whoever shall participate in any such lottery by becoming a member of, or affiliating with, any such group or organization or who shall solicit any person for membership or affiliation in any such group or organization commits a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083. (2) A "pyramid sales scheme," which is any sales or marketing plan or operation whereby a person pays a consideration of any kind, or makes an investment of any kind, in excess of $100 and acquires the opportunity to receive a benefit or thing of value which is not primarily contingent on the volume or quantity of goods, services, or other property sold in bona fide sales to consumers, and which is related to the inducement of additional persons, by himself or herself or others, regardless of number, to participate in the same sales or marketing plan or operation, is hereby declared to be a lottery, and whoever shall participate in any such lottery by becoming a member of or affiliating with, any such group or organization or who shall solicit any person for membership or affiliation in any such group or organization commits a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083. For purposes of this subsection, the term "consideration" and the term "investment" do not include the purchase of goods or services furnished at cost for use in making sales, but not for resale, or time and effort spent in the pursuit of sales or recruiting activities. A little more to the point (condensed): 1) The organization of any...group...brought together under any plan...whereby...anything of material value...given by members thereofÉto any other member thereof, which plan...includes any provision for the increase in such membership through a...process of new members securing other new members and thereby advancing themselves in the group to a position where such members in turn receive...things of material value from other members, is hereby declared to be a lottery, And whoever shall participate in any such lottery...by affiliating with any such group or organization or who shall solicit any person for...affiliation in any such...organization commits a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083. (2) A "pyramid sales scheme," which is any...operation whereby a person pays a consideration of any kind...in excess of $100 and acquires the opportunity to receive a benefit...which is not primarily contingent on...goods, services...sold in bona fide sales to consumers, and which is related to the inducement of additional persons,...regardless of number, to participate in the same...operation, is hereby declared to be a lottery. And whoever shall participate in any such lottery by...affiliating with any such group...or who shall solicit any person for...affiliation in any such group...commits a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083. I didn't check the sentencing guidelines for Florida, but in Kansas it's five to 17 months in prison and/or a fine of up to $100,000. Any questions? See here... Or if that link doesn't work: http://www.leg.state.fl.us/citizen/documents/statutes/search/index.cfm and search for "Pyramid". Don't live in Florida? I'm SURE it's substantially similar in your state. It took me 5 minutes on the Internet to find the needed info. Try "Pennsylvania legal code" substituting your state on http://WWW.ASK.COM. For the US Tax Codes cited in the Gifting promotional materials: http://www4.law.cornell.edu/uscode/26/ch12.html I didn't read them, but I sure that is legal under the tax code. I suspect that robbery might also be legal under the tax code as long as you pay taxes on it. I spoke to someone in the Consumer Protection Office in Florida who said that it was a third-degree Felony. I don't know why but would speculate that it becomes a felony when going across state lines. Interestingly, if you review Federal Sentencing Guidelines, criminal sentences for fraud and other "white collar" felonies, when associated with charities and non-profits, go way up. I'm satisfied. It is illegal. Your servant, Jiva Goswami dasa Comment on this story  Contact VNN about this storySend this story to a friend
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